DNL

About DNL

The Fund employs a “passive management” – or indexing– investment approach designed to track the performance of the Index. The Fund generally uses a representative sampling strategyto achieve its investment objective, meaning it generally will invest in a sample of the securities in the Index whose risk, return andother characteristics resemble the risk, return and other characteristics of the Index as a whole. Under normal circumstances, at least95% of the Fund’s total assets (exclusive of collateral held from securities lending) will be invested in constituent securitiesof the Index and investments that have economic characteristics that are substantially identical to the economic characteristics of suchconstituent securities. The Index is a fundamentally weighted index that consists ofdividend-paying global ex-U.S. common stocks with growth characteristics. The Index is comprised of the 300 companies in theWisdomTree Global ex-U.S. Dividend Index, which defines the dividend-paying universe of companies in developed countries andemerging markets throughout the world, excluding the United States, with the best combined rank of growth and quality factors,specifically: medium-term earnings growth expectations, return on equity, and return on assets. To be eligible for inclusion in theIndex, a company must meet the following criteria as of the annual Index screening date: (i) payment of at least $5 million in grosscash dividends on common shares during the preceding annual cycle; (ii) market capitalization of at least $2 billion; (iii) mediandaily dollar trading volume of at least $100,000 for the preceding three months; and (iv) an earnings yield greater than thedividend yield. Securities are weighted in the Index based on dividends over theprior annual cycle. Companies that pay a greater total dollar amount of dividends are more heavily weighted. To derive a company’sinitial Index weight, (i) multiply the U.S. dollar value of the company’s annual gross dividend per share by the numberof common shares outstanding for that company (the “Cash Dividend Factor”); (ii) calculate the Cash Dividend Factor for eachcompany; (iii) add together all of the companies’ Cash Dividend Factors; and (iv) divide the company’s Cash DividendFactor by the sum of all Cash Dividend Factors. On the Index’s annual screening date, the maximum weight of any security in theIndex is capped at 5%, and the Index caps the weight of constituents exposed to any one country and any one sector (except for the realestate sector) at 20%. The weight of constituents exposed to the real estate sector is capped at 15%. The Index also may adjust the weightof individual constituents on the annual screening date based on certain quantitative thresholds or limits tied to key metrics of a constituentsecurity, such as its trading volume. To the extent the Index reduces an individual constituent’s weight, the excess weight willbe reallocated pro rata among the other constituents. Similarly, if the Index increases a constituent’s weight, the weight of theother constituents will be reduced on a pro rata basis to contribute the weight needed for such increase. The weight of a sector, country,or individual constituent in the Index may fluctuate above or below specified caps and thresholds, respectively, between screening datesin response to market conditions. WisdomTree, Inc. (“WisdomTree”),the Index Provider and parent company of WisdomTree Asset Management, Inc. (“WisdomTree Asset Management” or the “Adviser”),currently uses the Global Industry Classification Standard (GICS®),a widely recognized industry classification methodology developed by MSCI, Inc. and Standard & Poor’s Financial Services LLC,to identify the extent of the Index’s exposure to a sector or industry. A GICS sector typically is comprised of multiple industries.Because the Fund seeks to track the Index it is expected to have the same sector and industry exposure as the Index. While the Index’sand the Fund’s sector exposure may vary from time to time, as of June 30, 2024, the Index had significant exposure (e.g.,approximately 15% or more of the Index’s total weight) to the Information Technology, Industrials and Health Care Sectors. Tothe extent the Index’s constituents are concentrated (i.e., holds more than 25% of constituents) in the securities of companiesassigned to a particular industry or group of industries, the Fund will seek to concentrate its investments in such industry or groupof industries to approximately the same extent as the Index. As of June 30, 2024, the equity securities of companies domiciledin or otherwise tied to Europe (including exposure to Switzerland) and Taiwan comprised a significant portion (e.g., approximately15% or more of the Index’s total weight) of the Index, although the Index’s geographic exposure may change from time to time.As a result, the Fund can be expected to also have significant exposure to these countries and/or regions.